1. Leon Liao, Garbour Chen, Alex Liu, Janet You Wal-Mart and Carrefour Supply Chain Comparison PK

2. Supply Chain Strategy Inventory Management Logistics and Distribution Procurement &supplier Management Why this Strategy? Technology

3. World Wide Walmart rated as No. 4 in the recent Supply Chain Top 25 by Gartner Carrefour has no such recognition yet

4. 2,100,000 Employees Fleet of 3500 owned Trucks 80 Distribution Centers Most Technologically advanced SCM Profit of $14 Billion Sales of $405 Billion (More than GDP of 160 countries) 8500 Stores worldwide in 14 nations

5. 495,000 Employees Profit of 3 Billion Euro Sales of 85 Billion Euro 12000 Stores worldwide in 34 nations Founded in 1957 in France 3PL Logistics

8. Inventory Management CPFR (Collaborative Planning, Forecasting & Replenishment) CPFR provides templates for supply chain partner collaboration. The process model at below is segmented into three stages. The planning stage establishes and updates the relationship; the sales forecasting and order replenishment stages occur more frequently. An important premise of this model is that accuracies in the forecast can be improved by having the customer and supplier participate in the forecast.

9. Inventory Management CPFR (Collaborative Planning, Forecasting & Replenishment) - Walmart Started in 1997-98 with pilot project with Sara Lee increasing sales by 32% Massive improvement ( from 89% to 97%) of in-stock items Lead times reduced from 21 days to 11 days Implementation was costly and required huge analytics Can be implemented with Large Suppliers CRP --Continuous replenishment program DRP--Distribution Requirements Planning

10. Inventory Management ERP - Carrefour Consumption/Requirements MRP, work out requirements to supplier (PO) Production, delivery Supplier Carrefour EDI Delivery ERP

11. Inventory Management (CPFR Vs. ERP)

12. VMI VMI implementation decision by top mgmt. Employees convinced of the benefits of VMI EDI Standards were set POS data sent to manufacturers Manufacturer decides inventory replenishment Goods are shipped to Distribution center Walmart/Carrefour sends acknowledgement Manufacturer gets credited

13. Logistics and Distribution Comparison: Wal-Mart Distribution System Update Year Supply Management Order Management and Performance 1969 Computer Tracking Inventory 1980 Barcode Track order flow 1985 Apply EDI in area distribution center 1986 1988 Fully apply EDI. 1st using of satellite system, scanner 1989 72 hours delivery 1990 IT vendor has access to website for sales info. 1992 24 hours deliver Real time information for better communication 1995 Reduce staff Quicker response in supply chain 1997 Real Time Sales and Inventory Data 1998 Auto supply chain for small/local vendor 1999 Effective customer feedback system Availability for customer shopping information to sales managers with vedio 2000 Increase 570% for website inquiry daily sales to $1100M on Thanksgiving Day 2001 Run updated website customers can get commodity very easy from 500K skus. 2002 No1 of Top 500 in Fortune. Daily sales to $1430M on Thanksgiving Day 2003 Promote EDIINT AS2 to set up industry standard

16. Wal-Mart and Carrefour Comparison Wal-Mart Carrefour Vendor1 Vendor2 Vendor3 Vendor… Distribution Center Store 1 Store 2 Store 3 Store… Vendor1 Vendor2 Vendor3 Vendor… Store 1 Store 2 Store 3 Store… Logistics and Distribution

20. Inventory Turnover Comparison Wal-mart: 7.9 Carrefour 10.4 Industry: 7.5

21. Why this Strategy- Walmart Focus much on U.S market as it account for 70% of the total sales turnover. 1 To achieve the target that lowest total supply chain cost in the industry. 2 3 U.S market needs are huge and almost identity. 3 U.S enterprise pursue new technology and willing to take risk.

22. Why this Strategy-Carrefour 1 To build flexible and customer focused supply chain to compete in the global market. 2 Carrefour operates in three major markets: Europe, Latin America and Asia. With a presence in 34 countries , over 57% of group turnover derives from outside France. 3 Carrefour’s main market varies a lot as it comes from different country, culture, and purchasing power. 3 Europe enterprise are usually conservative and respect tradition.